The U.S. pro-crypto pivot under President Donald Trump may come at a hefty price, one European Central Bank Governing Council member has warned.

ey Appointments to Executive Orders, Trump's Embrace of Crypto May Come With Risks

The U.S.’s pro-crypto pivot may come at a hefty price, one European Central Bank Governing Council member has warned.

The Trump administration has blitzed through key appointments, executive orders, and more in a broad effort to eliminate regulatory hurdles for the crypto industry. However, this embrace of crypto may come with significant risks, according to an ECB Governing Council member.

Financial Crisis in the Making?

According to Francois Villeroy de Galhau, Governor of the Bank of France and ECB Governing Council member, the U.S. risks triggering the next financial crisis with its pro-crypto stance.

“The United States risks sinning through negligence,” Villeroy told La Tribune Dimanche in an interview published on Saturday, March 15.

Financial crises often originate in the US and spread to the rest of the world, he added. But Villeroy believes the Trump administration is sowing the seeds of future upheaval by encouraging crypto-assets and non-bank finance.

Villeroy’s statements largely align with the ECB’s seemingly unwavering crypto skepticism under President Christine Lagarde.

ECB Bitcoin and Crypto Perception Under Lagarde Leadership

The ECB president has repeatedly stated that Bitcoin and other cryptocurrencies have no value. Lagarde has also asserted that crypto and decentralized finance pose risks to financial stability. She has also said that no European central bank would adopt Bitcoin as a reserve asset.

Meanwhile, the ECB is far from the only multinational financial organization to hold this stance. The International Monetary Fund (IMF) has also warned of economic risks from unbridled crypto adoption. Recently, the IMF conditioned a $1.4 billion bailout for El Salvador on the country stopping its Bitcoin accumulation.

Many of these organizations point to the series of interconnected crypto firm collapses in the 2022 bear market as evidence of the instability that crypto can bring.

Still, crypto supporters often argue that fears of financial stability risks stemming from crypto are largely unfounded and born out of fear of embracing the future, like the Internet and the telephone before it.